Global Automated Fare Collection Market to Reach US$ 12.06 Billion in 2026, Spurred by Rising Need for Contactless Payment Solutions

July 28, 2021

According to the latest report by IMARC Group, titled "Automated Fare Collection Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026," the global automated fare collection market size reached US$ 6.27 Billion in 2020. An automatic fare collection (AFC)system refers to a contactless software-based ticketing system that is used for collecting fare payments while replacing conventional ticketing solutions with automated ticketing. It is commonly deployed at entry and exit points of public transport units that consist ofautomatic gate machines,recharging terminals, ticket checking machines and ticket vending machines. These machines are commonly compatible with a vast array of payment methods that provide enhanced convenience to the users. Their usage also facilitates improved transaction rate and excellent operational transparency while offering cost- and time-efficiency to the travelers. 

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Global Automated Fare Collection Market Trends:

The global market is majorly driven by rapid digitization and the widespread adoption of automation across the globe. With the busy and hectic lifestyles led by the working professionals, there has been a rising need for convenient and user-friendly modes of fare collection across public transport terminals. This has impelled the deployment of AFC systems at the entry and exit points of transport terminals in an attempt to minimize the wastage of time waiting in queues and ensure contactless and hassle-free payment solutions. Moreover, the continual developments in the existing public transport infrastructure and the widespread usage of smartphone applications for accessing travel route information and online booking of tickets are creating a positive outlook for the market. Furthermore, the increasing integration of advanced technologies with AFC systems is also acting as a major growth-inducing factor. For instance, the growing preference for open road tolling (ORT) and near-field communication (NFC) systems are increasingly being deployed at toll booths to facilitate free-flowing toll collection and minimize traffic congestion. Some of the other factors contributing to the market growth include the rising demand for fare collection systems with low fraud rates and the rapid expansion of smart cities on the global level. On account of the aforementioned factors, the market is expected to reach a value of US$ 12.06 Billion in 2026, registering a CAGR of 11.40% during 2021-2026.

Market Summary:

  • On the basis of the component, the market has been bifurcated into hardware, and software and services.
  • Based on the system type, the market has been divided into ticket vending machine (TVM), ticket office machine (TOM), fare gates and IC cards.
  • On the basis of the technology, the market has been classified into smart card, magnetic stripe, near field communication (NFC), and others.
  • Based on the application, the market has been segmented into railways and transportation, parking, entertainment, and others.
  • On the geographical front, the market has been segregated into North America (the United States and Canada), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa.
  • The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include Advanced Card Systems Limited (HNA Technology Investments Holdings), Atos SE, Cubic Corporation, Indra Sistemas SA, Nippon Signal Co. Ltd., NXP Semiconductors N.V., Omron Corporation, Scheidt & Bachmann GmbH, Siemens AG, Sony Corporation, STMicroelectronics and Thales Group.

About Us

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

Contact US

30 N Gould St, Ste R
Sheridan, WY (Wyoming) 82801 USA
Tel No:(D) +91 120 433 0800
Americas:- +1 631 791 1145 | Africa and Europe :- +44-702-409-7331 | Asia: +91-120-433-0800, +91-120-433-0800

Global Automated Fare Collection Market to Reach US$ 12.06 Billion in 2026, Spurred by Rising Need for Contactless Payment Solutions
Select Licence Type

Benefits of Customization

Personalize This Research

Triangulate with your Data

Get Data as per your Format and Definition

Gain a Deeper Dive into a Specific Application, Geography, Customer or Competitor

Any level of Personalization

Get in Touch With Us

Phone: +1-631-791-1145


Phone: +91-120-433-0800


Phone: +44-753-713-2163


Client Testimonials

Aktive Services

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

Read More
Bayer AH

It was indeed a great experience to work with IMARC on the assignment on Aqua market. The team had done a fantastic job in terms of what was expected, what was assured and what was the result… the report gave us many insights and market know how which allowed us to work on our strength and define exact strategies…

Read More
Colruyt Group

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Read More

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

Read More
Zee Media Corp. Ltd.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Read More
Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

Read More
Sumitomo Corporation

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

Read More
Hameln Rds

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

Read More
Quality Consultants BV

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

Read More
TATA Advanced Systems Limited

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

Read More

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

Read More